The US may now seize certain glove products by Top Glove Corporation Bhd after the country's Customs and Border Protection (CBP) agency issued a Finding that concluded the firm is, or likely, using forced labour for certain disposable gloves imported to the US.
Under US regulations, the CBP can issue withholding orders against products if its investigation finds reasonable but not necessarily conclusive grounds that convict, forced or indentured labour had been used.
Such an order was issued against Top Glove in July last year, which required an admissibility determination, and the firm must prove the products were not made using forced labour.
Failing this, the products will be denied entry and must be exported back out of the country.
However, the CBP has now taken things to the next level by issuing a Finding in the US Federal Register.
A Finding of forced labour issued with the approval of the US Department of Homeland Security secretary allows the seizure and forfeiture of products if the importer cannot prove they were not produced using forced labour.
This is in contrast to the previous detention order, which only involves a denial of entry.
"CBP may seize and forfeit imported merchandise covered by a Finding," said a notice published in the US Federal Register on Top Glove.
The Finding was dated March 23 and was published in the US Federal Register today. It takes effect on the same day of publication.
Meanwhile, The Edge Markets reported that Top Glove was following up on the matter for an expeditious resolution.
It cited a report by independent international consultant Impactt Ltd, which concluded that Top Glove's operations did not amount to "systemic forced labour".
Top Glove added that it took extensive remedial actions to improve its practices and continues to do so.
Top Glove's workers' dormitories have also been raided by Malaysian authorities. The firm promised to improve working and living conditions for its staff. - Mkini
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